Thursday, May 16, 2019

If you bought last year you are feeling butthurt.

When light retail sales came in it wasn't a surprise to me. Gas prices have been up for months, and home prices have been down.

Last week all these stories start circulating about how housing inventory was surging in the Bay Area and I had to take a couple of days to see if I thought the word "surging" was appropriate. People use a lot of hyperbolic language today.

So yesterday I looked through the MLS and started seeing the craziest shit. Sept of last year was a turning point. Tons of houses fell out. But there is one particular house that stood out to me. It was obviously a flip. Bought in Sept, put right back on the market  a few months later for a 200 thousand dollar loss. That doesn't even include what it cost him to fix it up.  That is a 20% loss.

Which why underwater houses have started to rise I guess. That house is pretty close to their criteria. 25% underwater.

For a couple of months it seemed like home owners were getting with the program and right pricing things. But now there are a lot of huge markdowns again. Inventory in my town is up 30%. Which should be good for some people. But I'm guessing it doesn't stop there since this has been hitting my local news. That makes bottom fishers dig in their heels and wait for things to fall further.

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